Interest rates market movements were fairly subdued with the all of weeks trading in Treasuries and mortgage markets contained inside a fairly narrow range.  The news for borrowers was mostly positive with mortgage rates moving to the downside and credit card rates holding even.  CD rate investors have nothing to cheer about with pathetic yields remaining in place, but there was no significant bad news as bank CD rates mostly held steady.

Yields decreased this week even while the news on the European debt and banking problems stayed mostly out of the headlines and the domestic economic data showed some strength.  These are usually actions or news items that are the precursors to rising bank rates.

The strength of the week was continued strong housing data.  Existing and new home sales, along with home prices and home inventories have been making some swings to the upside and back to the downside throughout the year but the overall trend in these statistics have been performing better in 2012 over that of 2011.  The significance here is that housing is a very important industry in the US and growth in housing can lead to strength in additional sectors which is why you frequently hear the Federal Reserve chairman reflect on this sector as the Fed tries to gauge future economic growth. .

A key downbeat tone came from the recent releases on earnings reports.  The week showed a greater than expected release of disappointing earnings results.  Some companies reported greater earnings declines than had been expected only weeks earlier.  In addition, the comments and outlook reported by many of the largest companies reporting earnings were somewhat uncertain if not a tad bit gloomy.  Note – the Dow was down over 1 percent for the week along with the S&P 500, oil dropped over 4 percent and even gold ended the week on a down beat.

Mortgage rates were down almost across the board for the most popular home loan products.  The one exception to lower mortgage rates for the week came from FHA loans.  The average FHA mortgage rate ticked up by a smidgen, rising by just over one basis point or .01 percent to 3.470 percent.

The 30 year fixed rate mortgage was rather solidly lower, sliding down nine basis points for the week.  The average 30 year mortgage rate was reduced to 3.522 percent from 3.612 percent in the previous week.  30 year jumbo mortgage rates were lower with a little less conviction, falling 3.3 basis points.  The average jumbo mortgage rated closed the week at 3.950 percent after starting the week at 3.983 percent.

CD interest rates barely budged on the week.  The average CD rate in the current bank rate survey drifted down by just 1/1000ths of a percent, dipping to 1.046 percent from 1.047 percent in the week earlier.  The best six month CD rates and two year CD rates were unchanged from the prior week with average yields of 0.771 percent and 1.188 percent, respectively.  The best three month CD rates available nationally slipped by 1/1000th of a percent to 0.482 percent.  The highest one year CD rates displayed a rate increase, rising to 1.063 from 1.060 percent in the week earlier and the average rate for the top five year bank CDs took a hit of 5/1000ths of a percent to an average yield of 1.728.  All in all, very modest rate changes this past week.

Credit card rates one new credit card offered went back to being unchanged this week after experiencing a small rate decrease in the week earlier.  The average credit card interest rate for new card offers across all consumer credit card categories remained at 13.71 percent.

The top yielding bank money market rates and savings account rates were left unaltered as the week came to a close.  The average found on the top ten highest savings account rates and money market rates available nationally remained at 0.952 percent.

Talk about a narrow trading range, Treasury rates pretty much ran in place.  Most all Treasury bills and bonds ended the week with a rate that was within one basis point of where they started the week.

The weekly bank rate survey provides a detailed report on bank savings rates and lending rates by consumer rate category.  The most current survey is for the week ending October 26, 2012.  The weekly rate survey presented the following interest rates and their changes for mortgage rates, CD interest rates, credit card rates, money market rates, savings account rates and Treasury rates.

Bank Rates Market Recap for October 26, 2012

CD interest rates:
Composite CD interest rate index 1.046 percent (down .001 percent) 
3 month CD rates 0.482 percent (down .001 percent)
6 month CD rates 0.771 percent (unchanged) 
1 year CD rates 1.063 percent (up .003 percent) 
2 year CD rates 1.188 percent (unchanged) 
5 year CD rates 1.728 percent (down .03 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 0.952 percent (unchanged) 

Mortgage rates:
 30 year mortgage rates3.522 percent (down .09 percent)  
15 year mortgage rates 2.863 percent (down .027 percent)  
20 year mortgage rates 3.438 percent (down .053 percent) 
30 year jumbo mortgage rates 3.950 percent (down .033 percent) 
30 year FHA mortgage rates 3.470 percent (up .012 percent)

Credit card rates:
Credit card rates for new credit card offers 13.71 percent (unchanged)

Treasury rates:
Six month Treasury rate 0.15 percent (up .01 percent) 
One year Treasury rate 0.19 percent (up .01 percent)
Two year Treasury rate 0.30 percent (unchanged)
Five year Treasury rate 0.76 percent (down .01 percent)
Ten year Treasury rate 1.78 percent (down .01 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of October 26, 2012 with all of the interest rates obtained directly from the banks within the survey.  Treasury rates are obtained directly from the Department of the Treasury.  

Additional bank rate data for mortgage rates, CD rates and checking accounts for the week ending October 26, 2012 can be found at the following rate tables: 9 month CD rates, 3 year CD rates, 4 year CD rates, 20 year mortgage rates and the best interest checking accounts.

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